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Herbalife Delivers Q3 Net Sales Increase Above Guidance Midpoint,<\/b>North America Returns to Growth; Q3 Adjusted EBITDA<\/b>1<\/sup> Exceeds Guidance;<\/b>Tightens Full-Year Guidance Ranges<\/b><\/p>\n LOS ANGELES–(BUSINESS WIRE<\/a>)–Herbalife Ltd.<\/a> (NYSE: HLF) today reported financial results for the third quarter ended September 30, 2025:\n<\/p>\n This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20251105093751\/en\/<\/a><\/p>\n \n\u201cHerbalife\u2019s third-quarter performance reflects continued progress in our transformation strategy, as well as disciplined financial and operational execution. With North America returning to growth and adjusted EBITDA1<\/sup> exceeding guidance, we are delivering on our commitments and building forward momentum.\u201d Highlights<\/b><\/p>\n Third Quarter 2025<\/b><\/p>\n Recent Developments<\/b><\/p>\n Outlook<\/b><\/p>\n 1<\/sup><\/p>\n<\/td>\n \nNon-GAAP measure. Refer to Schedule A \u2013 \u201cReconciliation of Non-GAAP Financial Measures\u201d for a detailed reconciliation of these measures to the most directly comparable U.S. GAAP measure for historical periods, as applicable, and a discussion of why the Company believes these non-GAAP measures are useful and certain information regarding non-GAAP guidance.\n<\/p>\n<\/td>\n<\/tr>\n 2<\/sup><\/p>\n<\/td>\n \nNon-GAAP measure. Refer to Schedule A \u2013 \u201cReconciliation of Non-GAAP Financial Measures\u201d for a discussion of why the Company believes adjusting for the effects of foreign exchange is useful.\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Management Commentary<\/b><\/p>\n \nHerbalife reported third quarter 2025 net sales of $1.3 billion, up 2.7% year-over-year, including 50 basis points of foreign currency headwinds. On a constant currency basis2<\/sup>, net sales were up 3.2% year-over-year for the quarter.\n<\/p>\n \nGross profit margin was 77.7% in the third quarter, compared to 78.3% in the prior year period. On a year-over-year and approximate basis, pricing benefits of 80 basis points were more than offset primarily by foreign currency headwinds of 90 basis points, 30 basis points of input cost inflation, driven mainly by higher raw material costs, and 10 basis points each from increased inventory write-downs and unfavorable sales mix.\n<\/p>\n \nFor the quarter, net income attributable to Herbalife was $43.2 million, with net income margin of 3.4% and adjusted net income1<\/sup> of $51.5 million. Adjusted EBITDA1<\/sup> of $163.0 million includes approximately $12 million of foreign currency headwinds year-over-year, with adjusted EBITDA1<\/sup> margin of 12.8%, down 60 basis points versus the third quarter of 2024. Diluted EPS was $0.42, with adjusted diluted EPS1<\/sup> of $0.50, which includes a $0.08 year-over-year foreign currency headwind.\n<\/p>\n \nNet cash provided by operating activities was $138.8 million and $235.0 million for the three and nine months ended September 30, 2025, respectively. Capital expenditures were $20.8 million and $61.9 million for the three and nine months ended September 30, 2025, respectively, and capitalized software as a service (\u201cSaaS\u201d) implementation costs were approximately $7 million and $16 million, respectively. The Company expects to incur total capitalized SaaS implementation costs of approximately $25 million to $30 million for full year 2025, which are not included in capital expenditures.\n<\/p>\n \nAs previously disclosed, and in accordance with the terms of the Pro2col Health LLC asset purchase agreement entered into in April 2025, a contingency payment of $2.0 million was paid during the third quarter as a result of the release of the beta version of the Pro2col technology platform in July 2025.\n<\/p>\n \nIn September 2025, the Company repaid the remaining outstanding principal balance of $147.3 million on its 7.875% Senior Notes due 2025 (\u201c2025 Notes\u201d) at maturity. The aggregate payment at maturity, including accrued and unpaid interest, was $153.1 million. As of September 30, 2025, $25.0 million was outstanding under the Company\u2019s revolving credit facility.\n<\/p>\n \n\u201cThe third quarter demonstrated clear progress, with a return to growth in both North America and on a worldwide basis,\u201d said Chief Financial Officer John DeSimone. \u201cWe also further reduced our total leverage ratio to 2.8x, underscoring our continued capital discipline and outperformance against our capital structure commitments.\u201d\n<\/p>\n \nFor the third quarter, three of the Company\u2019s five regions reported year-over-year growth in the number of new distributors joining Herbalife, led by North America, with a 17% increase. While the number of new distributors joining worldwide in the third quarter declined 2% year-over-year, they increased 11% on a two-year stack basis.\n<\/p>\n \nThis growth reflects the continued momentum the Company is building through strategic distributor engagement, training and product innovation. Supporting this momentum is the Diamond Development Mastermind Program, an ongoing training and accountability program that expanded to India in August, which also marked the program\u2019s first anniversary. Today, approximately 10,700 distributors and service providers worldwide are committed to the program, reporting increased confidence in applying core business and leadership principles and strategies. The program will expand to include additional markets in 2026.\n<\/p>\n \nThis momentum is further reflected in the strong attendance at the Company\u2019s September Extravaganza training events, where approximately 57,200 attendees gathered in Tashkent, Mexico City, Delhi, Bengaluru and Budapest. In total, Extravaganza events in 2025 attracted nearly 142,000 attendees, a 5% increase compared to 2024.\n<\/p>\n \nDuring the EMEA Extravaganza in Budapest, the Company launched HL\/Skin<\/i>, a new skincare line that combines advanced South Korean science with K-beauty-formulated ingredients. The HL\/Skin<\/i> range builds on Herbalife\u2019s science-backed approach to product development, with the efficacy of each product supported by clinical studies. Currently available in select European markets, HL\/Skin<\/i> is also supported by an AI-powered assessment tool that delivers a personalized facial analysis to customers in less than 60 seconds, while simultaneously providing product recommendations directly to distributor dashboards to enhance customer engagement and support sales.\n<\/p>\n Recent Developments<\/b><\/p>\n \nOn October 30, the Company expanded beta access to the Pro2col app to retail customers in the U.S., Canada, and Puerto Rico of distributors in the beta group. Formed following the app\u2019s initial beta release in July 2025, the beta group has scaled to include approximately 7,900 distributors.\n<\/p>\n \nConcurrently, the Company introduced new features within the Pro2col digital experience, including a coach dashboard, customizable sales funnels and a website builder to support existing distributor daily methods of operations, as well as multiple app enhancements. Together, these developments represent significant advancements toward the planned commercial release of Pro2col Beta 2.0 to all customers and distributors in the U.S. and Puerto Rico by the end of 2025. The Company plans to expand the Pro2col digital experience to additional global markets beginning in 2026.\n<\/p>\n \n\u201cAcross our business, product innovation, digital evolution and disciplined execution are driving momentum and delivering results,\u201d said Chief Executive Officer Stephan Gratziani. \u201cThrough our transformation, we are equipping and supporting our distributors to grow stronger businesses\u2014supporting progress today and building a clear path to sustainable growth and long-term shareholder value.\u201d\n<\/p>\n Third Quarter and Year to Date 2025 Key Metrics<\/b><\/p>\n Regional Net Sales and FX Impact<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n Reported Net Sales<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n YoY Growth (Decline)<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n $ million<\/b><\/p>\n<\/td>\n Q3 \u201825<\/b><\/p>\n<\/td>\n Q3 \u201824<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n including FX<\/b><\/p>\n<\/td>\n excluding FX2<\/sup><\/span><\/b><\/p>\n<\/td>\n<\/tr>\n \nNorth America\n<\/p>\n<\/td>\n 263.1<\/b><\/p>\n<\/td>\n \n260.4\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n1.0\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n1.1\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n<\/tr>\n \nLatin America\n<\/p>\n<\/td>\n 229.6<\/b><\/p>\n<\/td>\n \n207.1\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n10.9\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n10.7\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n<\/tr>\n \nEMEA\n<\/p>\n<\/td>\n 272.3<\/b><\/p>\n<\/td>\n \n261.9\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n4.0\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n2.3\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n<\/tr>\n \nAsia Pacific\n<\/p>\n<\/td>\n 437.4<\/b><\/p>\n<\/td>\n \n436.1\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n0.3\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n2.8\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n<\/tr>\n \nChina\n<\/p>\n<\/td>\n 71.3<\/b><\/p>\n<\/td>\n \n74.8\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(4.7\n<\/p>\n<\/td>\n \n)%\n<\/p>\n<\/td>\n \n(4.8\n<\/p>\n<\/td>\n \n)%\n<\/p>\n<\/td>\n<\/tr>\n Worldwide<\/b><\/p>\n<\/td>\n 1,273.7<\/b><\/p>\n<\/td>\n 1,240.3<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n 2.7<\/b><\/p>\n<\/td>\n %<\/b><\/p>\n<\/td>\n 3.2<\/b><\/p>\n<\/td>\n %<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n
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– Stephan Gratziani, CEO\n<\/p>\n\n
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